Long futures contracts on the U.S. dollar held by noncommercial speculators have been at record highs for three weeks in a row, said Chris Kimble at Kimble Charting Solutions in a note this week.
There are a “good more dollar bulls” than the 2008 and 2010 highs, he added.
In other words, being long the dollar looks to be one of the most crowded trades out there currently.
CurrencyShares Euro Trust (NYSEArca: FXE) in June has rebounded from a 52-week low. The currency ETF tracks the performance of the euro versus the U.S. dollar. FXE would benefit from a short squeeze in its underlying currency, the euro.
Trading volume in the ETFs tracking the dollar and euro — UUP and FXE — has trended lower in June after last month’s action, says Paul Weisbruch at Street One Financial.
Overall in the options markets for these currency ETFs, the theme has been bullish sentiment on the dollar ETF (UUP) and bearish sentiment on the euro (FXE), he added.
Currency markets chart source: Kimble Charting Solutions
PowerShares DB US Dollar Index Bullish
